THE IMPACT OF FOREIGN DIRECT INVESTMENT AND TRADE ON ECONOMIC GROWTH IN IRAN: AN ARDL BOUNDS TEST APPROACH
THE IMPACT OF FOREIGN DIRECT INVESTMENT AND TRADE ON ECONOMIC GROWTH IN IRAN: AN ARDL BOUNDS TEST APPROACH
Author(s): Masoud Ali KhalidSubject(s): Education, General Reference Works, Business Economy / Management
Published by: Regional Department of Defense Resources Management Studies
Keywords: Economic growth; FDI; Trade; ARDL and Iran;
Summary/Abstract: The correlation between trade, FDI and economic growth in many developing nations had remained one of the greatest crucial problems in the economic scholars in current years mostly for those countries facing from unemployment issues and lack of skills and technological development. Our study evaluates this problem by applying Autoregressive Distributed Lag (ARDL) model over the span 1970 - 2007 in Iran. We have found evidence that the relationship between FDI and population is positive and statistically significant, meaning that population is mainly characterized by foreign investors, knowledge and transfer of technology, and we can see that FDI is mainly affected by skill employers in Iran. While the relationship between FDI, Trade and GDPC are positive but insignificant, it illustrates that FDI doesn’t have any impact on both trade and growth rate in Iran. Our findings are similar with previous studies.
Journal: Journal of Defense Resources Management (JoDRM)
- Issue Year: 9/2018
- Issue No: 2
- Page Range: 24-40
- Page Count: 17
- Language: English